The offshore services firm previously responded to the pandemic challenges with cash protection measures including a 25% reduction in fees and salaries, altogether generating around US$10mln of savings. Before that, the company had already taken strategic steps to cut overhead by US$25mln via operational restructuring.
Lamprell said its expected cost base for 2020 is US$80mln, of which US$50mln are cash costs.
The company told investors that progress through its bid pipeline (which amounts to around US$5.5bn of work) has slowed due to the pandemic but it continues to see encouraging activity notably with Saudi Aramco and separately the fast-growing offshore wind business.
Lamprell highlighted that its presence in Saudi Arabia allows it access to revenue opportunities in an otherwise challenged oil industry.
In renewables, meanwhile, the company said it continues to deliver an increasing number of high-quality projects.
“This has been a period of significant progress for Lamprell,” said Christopher McDonald, Lamprell chief executive.
“The response of our people to the COVID-19 crisis has been excellent and we have continued to deliver well for clients on current projects.”
He added: “There is good momentum in the business and our operational performance.
“The proactive actions we have taken on costs, and an active bid pipeline with exposure to buoyant regions in both oil & gas and renewables, provide us with confidence that we are successfully navigating the challenges of COVID-19 and the industry downturn.”
Lamprell shares rose by 3.85p or 17.15% to change hands at 26.3p in Wednesday’s early deals.
Published at Wed, 22 Jul 2020 07:29:00 +0000-Lamprell says earnings broadly broke even in first half amidst pandemic